RM10 BILLION STIMULUS PACKAGE FOR SMES
MALAYSIA: Supplementary Special Stimulus Package worth RM10 billion especially aimed to support small and medium-sized enterprises (SMEs) to soften the impact during the COVID-19 business restrictions.
This supplementary stimulus is critical to support and ensure the survival of Malaysia's SMEs who are the backbone of our economy. Malaysia's SMEs currently account for over 60% of the country's employment rate and close to 40% of the economy.
SALARY SUBSIDIES
Increase for the three (3) month wage subsidy programme from RM5.9 billion to RM13.8 billion for all micro-entrepreneurs and small enterprises, medium companies and big companies. Qualifying wage threshold remains at RM4,000 and below.
RM1200 per employee for micro-entrepreneurs and small enterprises with 75 employees and below
RM800 per employee for medium-sized companies with 76 to 200 employees
RM600 per employee for big companies with more than 200 employees. (*eligible for up to 200 employees)
25% reduction in foreign workers' levy payments for all companies with work permits expiring from 01 April to 31 December 2020. (This does not apply to domestic workers)
* Salary aid is subject to the condition that the employer must retain their employees for at least six (6) months.
* Companies must be registered with SSM or local authorities and PERKESO before 01 January 2020.
GOVERNMENT GRANTS AND FINANCIAL RELIEF
Prihatin Special Grant for all qualifying SMEs of RM2.1 billion
A special grant of RM3000 per company (These SMEs must register with the Inland Revenue Board (IRB) to enjoy this facility. The government will obtain a list of eligible SMEs from the Local Authorities and Companies Commission of Malaysia (SSM))
2% interest rate for the RM500 million Micro Credit Scheme under Bank Simpanan Nasional (BSN) will be abolished
Microloan scheme for micro-businesses to be extended to Tekun Nasional with a maximum loan limit of RM10,000 per company at no interest. RM200 million will be provided for this.
*Applicants can only apply for one of the above schemes.
COMPLIANCE AND FILING
An automatic moratorium of thirty (30) days to allow companies to submit statutory documents to SSM from the last date of the MCO
Filing of company' financial statements extended for three months from the last date of the MCO (The flexibility is given to companies with financial years ending 30 September until 31 December. Companies will have to apply for this flexibility from SSM with no late charges imposed.)
PROPERTY RENTAL
The government has appealed to owners of private premises to reduce rental rates for SMEs during the MCO and three months after it ends
Landlords will be provided with additional tax deductions equal to the amount of rent reduction from April to June 2020. (This is subject to the condition that the rental is reduced by at least 30% during the period.)
Prime Minister's full speech click here.
